Severance Pay Laws in Virginia
Virginia is an at-will, right-to-work state with no mini-WARN statute and no state-level severance pay mandate. The federal WARN Act provides the only statutory layoff-notice floor — sixty days for mass layoffs of fifty or more employees at employers with one hundred or more total workers. Outside WARN coverage, severance is contractual.
Final wages in Virginia are governed by Va. Code §40.1-29, which requires payment of all earned wages on or before the next regular payday following termination. Accrued vacation is wages if payable under company policy or written contract. The Virginia Department of Labor and Industry enforces the statute and provides for unpaid wages plus liquidated damages equal to the unpaid amount plus attorney's fees under Va. Code §40.1-29.D for willful nonpayment.
On non-competes, Va. Code §40.1-28.7:8 (effective July 2020) prohibits non-competes for "low-wage employees" — defined as those whose average weekly earnings are less than the average weekly wage of the Commonwealth (currently approximately $1,400 per week, indexed). For higher-earning workers, common-law reasonableness applies. The statute provides a private right of action with statutory damages plus attorney's fees.
On discrimination, the Virginia Human Rights Act (Va. Code §2.2-3900 et seq.) was substantially expanded by the Virginia Values Act effective 2020. It applies to employers with fifteen or more employees (six for general discrimination) and provides protections across federal Title VII categories plus state-specific protections for sexual orientation, gender identity, and pregnancy. The Office of the Attorney General administers state-level claims.
Virginia's economy is anchored by federal government and contracting (the Pentagon, NSA satellite operations, CIA, and a long list of federal facilities in Northern Virginia), technology, healthcare, finance, and logistics. Federal contractors in the DC metro have produced severance practices that mirror federal personnel norms, materially exceeding the state's legal floor.
How Much Severance Are Virginia Workers Owed?
Virginia employees in federal contracting, tech, and finance typically receive two to four weeks of severance per year of service for individual contributors, with NoVa-based contractors and tech employers running highest. Healthcare and logistics come in closer to the modeled midpoint.
Industry Benchmarks for Virginia
In Virginia, NoVa federal contracting and tech pay above the modeled midpoint; healthcare and logistics come in closer to it.
Major industries
- · Federal government and contracting
- · Technology
- · Healthcare
- · Finance
- · Logistics
Major cities
- · Virginia Beach
- · Norfolk
- · Chesapeake
- · Richmond
- · Arlington
Frequently Asked Questions — Virginia Severance
Are non-competes enforceable in Virginia?+
Under Va. Code §40.1-28.7:8 (2020), non-competes are prohibited for low-wage employees — defined as those whose average weekly earnings are less than the average weekly wage of the Commonwealth (currently approximately $1,400 per week). For higher-earning workers, common-law reasonableness applies. The statute provides a private right of action with statutory damages plus attorney's fees.
When is my final paycheck due in Virginia?+
Under Va. Code §40.1-29, final wages are due on or before the next regular payday following termination. Accrued vacation is wages if payable under company policy. Liquidated damages equal to the unpaid amount plus attorney's fees are available under §40.1-29.D for willful nonpayment.
Does Virginia require employers to pay severance?+
No. Virginia has no state severance pay mandate. The federal WARN Act provides the only notice floor. Severance is contractual.
Calculate for a nearby jurisdiction